Muhurat Trading 2026: Date, Timing and What to Expect

Muhurat trading is a special one-hour session held on Diwali, on a day the market is otherwise closed. It marks the start of the Hindu accounting year Samvat, and for most participants it is a symbolic act rather than a trading opportunity.

What it is and when it happens

Exchanges conduct a single abbreviated session on Diwali at a time announced each year by circular — the auspicious window varies with the festival’s timing. All segments typically participate, and trades settle normally.

Because the timing changes annually and is set relatively close to the date, the exchange announcement is the only reliable source. Do not rely on last year’s slot.

The tradition

The session marks the beginning of Samvat, the traditional accounting year. Many traders make a token purchase — often a single share of a company they intend to hold — as an auspicious opening rather than as an investment decision.

Historically the session has closed higher more often than not, which gets repeated as though it were predictive. With one short, thin, sentiment-driven session per year, the sample is far too small to support any strategy, and the tendency is better explained by the ceremonial buying itself than by anything about markets.

Trading conditions are genuinely poor

• Thin volume. Institutional participation is minimal.
• Wide spreads. Low liquidity means worse fills, particularly in options and mid-caps.
• Compressed session. One hour leaves no room to manage a position that moves against you.
• Low information content. Moves reflect sentiment and thin books rather than anything durable.

The sensible approach is to treat it as what it is — a tradition worth participating in symbolically, and a poor environment for taking real risk.

If you do participate

Stick to liquid large-caps or index instruments where spreads stay reasonable. Keep size small. Avoid establishing derivatives positions you will have to manage into the following session, since the next full trading day may be several days away depending on where Diwali falls — check the holiday calendar.